The present invention relates generally to an on-line sales system. In particular, the present invention relates to a method-end system for managing risk associated with transacting commerce in locales utilizing different currencies.
The burgeoning use of the internet or other dispersed computer communications networks has created a surge in on-line sales transactions. Presently it is most common for an on-line retailer or other sales agent to conduct sales in one country with one currency risk. Few of these retailers are prepared to manage currency risk or offer their products in multiple currencies. Consequently, when they offer their product to consumers around the world, the consumers are required to pay in the retailer's local currency. It would be useful to have a product which will enable retailers or other business agents to offer prices in a variety of currencies.
As retailers or other sales agents expand to a global market spanning several countries, the sales agents will be presented with the risks associated with fluctuating currency prices. Typically, most e-commerce businesses are not well situated to adequately manage such currency risks.
Presently, credit card issuers including, for example, banks or corporate entities offer conversions for different currencies used to make an on-line sale. However, credit card arrangements do not lock in a currency price for a given period of time sufficient to enable an e-commerce retailer to sufficiently predict the impact of foreign currency exchange. In addition, a credit card issuer typically demands a relatively wide price difference for a currency exchange service, as compared to a market spot price.
It would be useful, therefore, to have a mechanism that allows an e-commerce sales agent to limit risk associated with currency exchange and also predict for a predetermined amount of time a currency price. In addition, it would be beneficial for an e-commerce sales agent to be able to negotiate a currency price based upon a projected sales volume/sales history and market data.